Sasol Integrated Report 2024 - Book - Page 51
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
CHIEF FINANCIAL OFFICER’S STATEMENT
Positioning ourselves for a sustainable and
financially resilient Sasol, to grow shareholder
value in an ever-evolving global market.
Hanré Rossouw
The diversification of our portfolio across the
Energy and Chemicals Businesses enhances the
overall stability and performance of our business
and mitigates risk. This diversification has proven
beneficial, reducing the impacts of low oil prices
in the past and currently mitigating the effects of
low chemical prices and softer market conditions.
SALIENT FEATURES
Profitability R60bn adjusted EBITDA*
Cash generation R8bn free cash flow
Balance sheet US$4bn net debt**
Disciplined capital allocation with updated
dividend policy R27 – 34bn per annum (in 2024
real terms) maintaining assets and delivering
2030 greenhouse gas emission reduction targets
Adjusted EBITDA is calculated by adjusting earnings before interest and tax
for depreciation, amortisation, share-based payments, remeasurement items,
change in discount rates of environmental provisions, all unrealised translation
gains and losses on our derivatives and hedging activities.
** Total debt excluding leases less cash and cash equivalents.
KEY MESSAGES
Softer financial performance
Balance sheet preservation
Disciplined capital allocation
Chief Financial Officer
Dear stakeholders
Sasol’s financial performance for the 2024 financial year
reflects a softer set of results compared to the prior year.
Global economic volatility, weaker product demand and
inflationary pressures persisted in 2024, coupled with various
challenges at our South African and international operations.
While we continued to see a declining Brent crude oil price, we
benefitted from the weaker rand/US dollar exchange rate resulting
in a stronger average rand/oil price of R1 585/bbl compared to
R1 552/bbl in the prior year. Refining margin of US$18,13/bbl was
also stronger relative to the prior year of US$12,14/bbl. Petrol
differentials were 13% higher, but diesel differentials were down
22% compared to last year, impacting our Fuels business. Chemical
margins remained constrained with only a slight improvement in
H2 2024, owing to the protracted oversupply in the market. The
Group polyethylene price of US$1 065/ton weakened by 8%
compared to the prior year of US$1 155/ton, however reflecting an
improvement from H1 2024 of US$1 000/ton. To minimise the
negative impact on the net margin of our Chemicals International
Business we have proactively managed production volumes in
some of our plants, and we will continue to do so until we see an
improvement in the market, while focusing on increasing volumes
of our higher-margin products.
*
GLOBAL ECONOMIC VOLATILITY PERSISTED COUPLED WITH OPERATIONAL CHALLENGES
SASOL INTEGRATED REPORT 2024
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